Baxi Supports UK Government’s Stance on RHI Policy

Baxi, one of Britain’s leading suppliers of energy efficient central heating systems and part of BDR Thermea, has welcomed a publication released by the UK Government that provides details of the Renewable Heat Incentive (RHI) Policy.

The RHI is expected to provide support to installation firms providing renewable heat technology. In an economic climate that has been shaped by a lingering recession and deep public spending cuts, any funding for renewable products ought to be welcomed with open arms.

Specification channel manager for BDR Thermea, Simon Osborne, said: “We are encouraged by the main thrust of the RHI documentation. The Department of Energy and Climate Change (DECC) has clearly learnt the important lessons from the Feed-in Tariff (FIT) framework and created an approach which will ensure technologies can be assessed in real life installations.

“The £15m funding could create around 25,000 installations under the Renewable Heat Premium Payments which will demonstrate the benefits renewable heat can deliver by 2015.”

Mr Osborne did raise concerns over specific details of the policy document, however, stating: “There is still clarity needed on key areas. We are disappointed that the definitive tariff levels for the domestic sector have not been revealed and we look forward to the publication of this information in May 2011. We also need detail on how dwellings will be assessed as eligible and whether the RHI tariff will be metered or deemed.”

Mr Osborne concluded: “On the plus side, we are pleased to see that a clear link between RHI and the Green Deal has been expressed. Whilst there is a delay with implementation, the Government has honoured the commitment that installations completed after 15th July 2009 will be eligible for payments from 2012.”

It is hoped that the RHI scheme will increase investment in green technology by more than £4 billion over the period leading to 2020. In terms of outright cost, the scheme, which is due to come into effect later this year, is worth around £860 million. Payments made under the RHI scheme will not be available to households until October 2012, however.